Bayer: Strategic management of the early innovation phase

Abstract

In addition to a clear commitment to an overarching strategic goal, strategic management of the early innovation phase in the field of life sciences requires two key capabilities: The skills and tools for sourcing additional early lead candidates, as well as the organizational and technological capability to master complexity. Both of Bayer's life science subgroups (Bayer CropScience and Bayer HealthCare) use a stage-gate process for continuously assessing the progress, value and probability of success of their early innovation projects. The stage-gate process used is divided into four major stages: Stages 0 to 2 address the early innovation phase, stages 3 and 4 address the later phases of product development and launch. To facilitate sound decision-making, the review process is guided by a strategic process of decision analysis, using criteria like market potential, likelihood of success, degree of innovation, and costs.